• Brookline Bancorp Announces Third Quarter Results

    المصدر: Nasdaq GlobeNewswire / 27 أكتوبر 2021 16:05:02   America/New_York

    Net Income of $28.8 million, EPS of $0.37

    Quarterly Dividend Increase of 4.2%

    BOSTON, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $28.8 million, or $0.37 per basic and diluted share, for the third quarter of 2021, compared to net income of $31.6 million, or $0.40 per basic and diluted share, for the second quarter of 2021, and net income of $18.7 million, or $0.24 per basic and diluted share, for the third quarter of 2020.

    Paul Perrault, Chairman and Chief Executive Officer of the Company commented on the third quarter earnings, “I am pleased to report solid earnings for the third quarter of $28.8 million or $0.37 per share as the economy in our markets continues to improve.” Perrault continued, “Our employees have remained focused on providing exceptional customer service to our customers and communities throughout 2021 which has positioned us well as we look forward to the end of the year.”

    BALANCE SHEET

    Total assets at September 30, 2021 decreased $149.3 million to $8.3 billion from $8.5 billion at June 30, 2021, and decreased $687.5 million from $9.0 billion at September 30, 2020. At September 30, 2021, total loans and leases were $6.9 billion, representing a decrease of $88.6 million from June 30, 2021, and a decrease of $464.7 million from September 30, 2020.

    The Company funded a total of 4,700 of SBA Paycheck Protection Program ("PPP") loans in the aggregate amount of $872.1 million. As of September 30, 2021, $160.6 million in PPP loans remain outstanding, net of deferred fees and costs of $5.4 million. Excluding PPP loan activity, the core loan portfolio grew $99.2 million in the third quarter compared to growth of $9.1 million in the second quarter.

    Total investment securities at September 30, 2021 increased $37.9 million to $732.0 million from $694.2 million at June 30, 2021, and decreased $52.4 million from $784.4 million at September 30, 2020. Total cash and cash equivalents at September 30, 2021 decreased $81.3 million to $239.1 million from $320.4 million at June 30, 2021, and decreased $78.2 million from $317.3 million at September 30, 2020. As of September 30, 2021, total investment securities and total cash and cash equivalents represented 11.7 percent of total assets as compared to 12.0 percent and 12.2 percent as of June 30, 2021 and September 30, 2020, respectively.

    Total deposits at September 30, 2021 decreased $21.7 million to $6.87 billion from $6.89 billion at June 30, 2021, and increased $80.5 million from $6.8 billion at September 30, 2020.

    Total borrowed funds at September 30, 2021 decreased $95.5 million to $267.5 million from $363.0 million at June 30, 2021, and decreased $737.5 million from $1.0 billion at September 30, 2020.

    The ratio of stockholders’ equity to total assets was 11.77 percent at September 30, 2021, as compared to 11.49 percent at June 30, 2021, and 10.39 percent at September 30, 2020. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 10.01 percent at September 30, 2021, as compared to 9.75 percent at June 30, 2021, and 8.73 percent at September 30, 2020. Tangible book value per share (non-GAAP) increased $0.16 from $10.35 at June 30, 2021 to $10.51 at September 30, 2021, compared to $9.77 at September 30, 2020.

    NET INTEREST INCOME

    Net interest income decreased $0.4 million to $70.7 million for the third quarter of 2021 from $71.1 million at the quarter ended June 30, 2021. The net interest margin increased 1 basis point to 3.53 percent for the three months ended September 30, 2021 from 3.52 percent for the three months ended June 30, 2021.

    NON-INTEREST INCOME

    Total non-interest income for the quarter ended September 30, 2021 decreased $0.3 million to $5.6 million from $5.9 million for the quarter ended June 30, 2021. The decrease was primarily driven by a decrease of $0.4 million in deposit fees and a decrease of $0.1 million in loan fees, partially offset by an increase of $0.2 million in loan level derivative income, net.

    PROVISION FOR CREDIT LOSSES

    The Company recorded a negative provision for credit losses of $3.1 million for the quarter ended September 30, 2021, compared to a negative provision for credit losses of $3.3 million for the quarter ended June 30, 2021. Total net charge-offs for the third quarter of 2021 were $1.3 million compared to $0.6 million in the second quarter of 2021. The increase was primarily driven by an increase in charge-offs on equipment financing and commercial loans for $0.2 million and $0.2 million, respectively, along with a decrease in recoveries on equipment financing and home equity loans for $0.2 million and $0.1 million, respectively. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 7 basis points for the third quarter of 2021 from 3 basis points for the second quarter of 2021.

    The allowance for loan and lease losses represented 1.48 percent of total loans and leases at September 30, 2021, compared to 1.52 percent at June 30, 2021, and 1.62 percent at September 30, 2020. Excluding PPP loans, the allowance for loan and lease losses represented 1.51 percent of total loans and leases at September 30, 2021 compared to 1.60 percent at June 30, 2021, and 1.76 percent at September 30, 2020.

    ASSET QUALITY

    The ratio of nonperforming loans and leases to total loans and leases was 0.52 percent at September 30, 2021, an increase from 0.49 percent at June 30, 2021. Total nonaccrual loans and leases increased $1.7 million to $35.9 million at September 30, 2021 from $34.2 million at June 30, 2021. The ratio of nonperforming assets to total assets was 0.44 percent at September 30, 2021, an increase from 0.41 percent at June 30, 2021. Total nonperforming assets increased $1.9 million to $36.5 million at September 30, 2021 from $34.6 million at June 30, 2021.

    From March 1, 2020 through the earlier of January 1, 2022 or 60 days after the termination date of the national emergency declared by the President on March 13, 2020 concerning the COVID-19 outbreak, a financial institution may elect to suspend the requirements under accounting principles generally accepted in the U.S. for loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a troubled debt restructured, including impairment accounting. This troubled debt restructuring relief applies for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. Financial institutions are required to maintain records of the volume of loans involved in modifications to which troubled debt restructuring relief is applicable. As of September 30, 2021, approximately 94 percent of loans granted an initial loan payment deferral have returned to payment status and 77 credits totaling $55.7 million, or 0.8 percent of total loans outstanding, are operating under modified terms.

    NON-INTEREST EXPENSE

    Non-interest expense for the quarter ended September 30, 2021 increased $2.9 million to $40.9 million from $38.0 million for the quarter ended June 30, 2021. The increase was primarily driven by an increase of $2.0 million in compensation and employee benefits expense due to a bonus compensation adjustment and higher retirement plan expense in the third quarter, and an increase of $1.5 million in other non-interest expense due to a $2.1 million gain on sale of other real estate owned in the second quarter, partially offset by a decrease of $0.3 million in occupancy expense, a decrease of $0.1 million in equipment and data processing expense, and a decrease of $0.2 million in professional services expense.

    PROVISION FOR INCOME TAXES

    The effective tax rate was 25.0 percent and 25.1 percent for the three and nine months ended September 30, 2021 compared to 25.4 percent for the three months ended June 30, 2021 and 26.2 percent and 23.9 percent for the three and nine months ended September 30, 2020.

    RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

    The annualized return on average assets decreased to 1.38 percent during the third quarter 2021 from 1.48 percent for the second quarter of 2021.

    The annualized return on average stockholders' equity decreased to 11.79 percent during the third quarter of 2021 from 13.21 percent for the second quarter of 2021. The annualized return on average tangible stockholders’ equity decreased to 14.15 percent for the third quarter of 2021 from 15.92 percent for the second quarter of 2021.

    DIVIDEND DECLARED

    The Company’s Board of Directors approved a dividend of $0.125 per share for the quarter ended September 30, 2021, representing an increase of 4.2 percent from the prior quarter. The dividend will be paid on November 26, 2021 to stockholders of record on November 12, 2021.

    STOCK REPURCHASE

    As previously disclosed, on January 27, 2021, the Company's Board of Directors approved a stock repurchase program authorizing management to repurchase up to $10.0 million of the Company’s common stock commencing on February 1, 2021 and ending on December 31, 2021. As of September 30, 2021, the Company completed the program.

    CONFERENCE CALL

    The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, October 28, 2021 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://services.choruscall.com/links/brkl211028.html. To listen to the call without access to the slides, interested parties may dial 844-200-6205 (United States) or 929-526-1599 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 996258). A recorded playback of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 866-813-9403 (United States) or 1-929-458-6194 (internationally) and entering the passcode: 495902.

    ABOUT BROOKLINE BANCORP, INC.

    Brookline Bancorp, Inc., a bank holding company with $8.3 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank and Bank Rhode Island (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com and www.bankri.com.

    FORWARD-LOOKING STATEMENTS

    Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regard the potential effects of the COVID-19 pandemic on the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements made with regard to the potential effects of the COVID-19 pandemic on the Company’s business, financial condition, credit quality, liquidity and results of operation may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These included, but are not limited to, general business and economic conditions on a national basis and in the local markets in which the Company operates; changes in consumer behavior due to changing political business and economic conditions or legislative or regulatory initiatives; the possibility that future credit losses may be higher than currently expected; reputational risk relating to the Company’s participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; and turbulence in capital and debt markets. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

    BASIS OF PRESENTATION

    The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.

    NON-GAAP FINANCIAL MEASURES

    The Company uses certain non-GAAP financial measures, such as operating earnings, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, the allowance for loan and lease losses as a percentage of total loans and leases less PPP loans, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

    INVESTOR RELATIONS:

    Contact:Carl M. Carlson
     Brookline Bancorp, Inc.
     Co-President and Chief Financial Officer
     (617) 425-5331
     ccarlson@brkl.com


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Selected Financial Highlights (Unaudited)
     
     At and for the Three Months Ended
     September 30,
    2021    		June 30,
    2021
    		March 31,
    2021
    		December  31,
    2020
    		September 30,
    2020
     (Dollars In Thousands Except per Share Data)
    Earnings Data:     
    Net interest income$70,697 $71,106 $69,109 $68,225 $65,938 
    (Credit) provision for credit losses (3,110) (3,331) (2,147) (2,103) 4,528 
    Non-interest income 5,586  5,910  4,794  4,219  4,862 
    Non-interest expense 40,922  37,966  40,811  40,038  40,947 
    Income before provision for income taxes 38,471  42,381  35,239  34,509  25,325 
    Net income 28,839  31,602  26,454  26,663  18,679 
          
    Performance Ratios:     
    Net interest margin (1) 3.53% 3.52% 3.39% 3.23% 3.08%
    Interest-rate spread (1) 3.39% 3.34% 3.15% 3.03% 2.85%
    Return on average assets (annualized) 1.38% 1.48% 1.21% 1.20% 0.83%
    Return on average tangible assets (annualized) (non-GAAP) 1.41% 1.51% 1.24% 1.22% 0.84%
    Return on average stockholders' equity (annualized) 11.79% 13.21% 11.18% 11.38% 7.99%
    Return on average tangible stockholders' equity (annualized) (non-GAAP) 14.15% 15.92% 13.51% 13.79% 9.70%
    Efficiency ratio (2) 53.64% 49.30% 55.22% 55.27% 57.83%
          
    Per Common Share Data:     
    Net income — Basic$0.37 $0.40 $0.34 $0.34 $0.24 
    Net income — Diluted 0.37  0.40  0.34  0.34  0.24 
    Cash dividends declared 0.125  0.120  0.120  0.115  0.115 
    Book value per share (end of period) 12.61  12.44  12.10  12.05  11.84 
    Tangible book value per share (end of period) (non-GAAP) 10.51  10.35  10.01  9.96  9.77 
    Stock price (end of period) 15.26  14.95  15.00  12.04  8.65 
          
    Balance Sheet:     
    Total assets$8,312,649 $8,461,964 $8,559,810 $8,942,424 $9,000,192 
    Total loans and leases 6,931,694  7,020,275  7,267,552  7,269,553  7,396,358 
    Total deposits 6,873,010  6,894,701  6,866,786  6,910,696  6,792,523 
    Total stockholders’ equity 978,452  972,252  945,399  941,778  935,558 
          
    Asset Quality:     
    Nonperforming assets$36,461 $34,588 $37,403 $44,963 $39,365 
    Nonperforming assets as a percentage of total assets 0.44% 0.41% 0.44% 0.50% 0.44%
    Allowance for loan and lease losses$102,515 $106,474 $109,837 $114,379 $119,971 
    Allowance for loan and lease losses as a percentage of total loans and leases 1.48% 1.52% 1.51% 1.57% 1.62%
    Net loan and lease charge-offs$1,255 $595 $1,760 $4,381 $4,963 
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.07% 0.03% 0.10% 0.24% 0.27%
          
    Capital Ratios:     
    Stockholders’ equity to total assets 11.77% 11.49% 11.04% 10.53% 10.39%
    Tangible stockholders’ equity to tangible assets (non-GAAP) 10.01% 9.75% 9.31% 8.86% 8.73%
          
    (1) Calculated on a fully tax-equivalent basis.     
    (2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.     
          


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES 
    Consolidated Balance Sheets (Unaudited) 
     September 30,
    2021    		June 30,
    2021
    		March 31,
    2021
    		December 30,
    2020
    		September 30,
    2020    		 
    ASSETS(In Thousands Except Share Data) 
    Cash and due from banks$28,865 $36,079 $41,284 $36,069 $33,818  
    Short-term investments 210,279  284,370  89,643  398,848  283,515  
    Total cash and cash equivalents 239,144  320,449  130,927  434,917  317,333  
    Investment securities available-for-sale 732,020  694,151  729,901  745,822  783,867  
    Equity securities held-for-trading -  -  518  526  525  
    Total investment securities 732,020  694,151  730,419  746,348  784,392  
    Loans and leases:      
    Commercial real estate loans 3,909,011  3,815,581  3,790,341  3,823,826  3,835,372  
    Commercial loans and leases 1,869,686  2,038,851  2,324,202  2,274,899  2,354,613  
    Consumer loans 1,152,997  1,165,843  1,153,009  1,170,828  1,206,373  
    Total loans and leases 6,931,694  7,020,275  7,267,552  7,269,553  7,396,358  
    Allowance for loan and lease losses (102,515) (106,474) (109,837) (114,379) (119,971) 
    Net loans and leases 6,829,179  6,913,801  7,157,715  7,155,174  7,276,387  
    Restricted equity securities 28,098  31,627  40,400  49,786  61,715  
    Premises and equipment, net of accumulated depreciation 70,811  71,240  72,524  71,568  72,441  
    Right-of-use asset operating leases 21,879  22,682  23,180  24,143  23,492  
    Deferred tax asset 39,643  41,324  42,857  40,129  42,269  
    Goodwill 160,427  160,427  160,427  160,427  160,427  
    Identified intangible assets, net of accumulated amortization 2,484  2,692  2,920  3,152  3,464  
    Other real estate owned and repossessed assets 601  372  6,383  6,515  1,413  
    Other assets 188,363  203,199  192,058  250,265  256,859  
    Total assets$8,312,649 $8,461,964 $8,559,810 $8,942,424 $9,000,192  
    LIABILITIES AND STOCKHOLDERS' EQUITY      
    Deposits:      
    Demand checking accounts$1,816,116 $1,926,713 $1,724,170 $1,592,205 $1,550,267  
    NOW accounts 513,032  495,598  481,988  513,948  459,902  
    Savings accounts 823,095  782,482  724,504  701,659  716,630  
    Money market accounts 2,393,362  2,250,651  2,192,468  2,018,977  1,878,258  
    Certificate of deposit accounts 1,141,861  1,178,131  1,273,105  1,389,998  1,492,913  
    Brokered deposit accounts 185,544  261,126  470,551  693,909  694,553  
    Total deposits 6,873,010  6,894,701  6,866,786  6,910,696  6,792,523  
    Borrowed funds:      
    Advances from the FHLBB 113,977  204,154  378,646  648,849  841,169  
    Subordinated debentures and notes 83,859  83,821  83,783  83,746  83,707  
    Other borrowed funds 69,703  75,039  83,574  87,652  80,169  
    Total borrowed funds 267,539  363,014  546,003  820,247  1,005,045  
    Operating lease liabilities 21,879  22,682  23,180  24,143  23,492  
    Mortgagors’ escrow accounts 6,455  6,231  6,483  5,901  6,429  
    Reserve for unfunded credits 12,736  13,142  13,705  13,071  13,964  
    Accrued expenses and other liabilities 152,578  189,942  158,254  226,588  223,181  
    Total liabilities 7,334,197  7,489,712  7,614,411  8,000,646  8,064,634  
    Stockholders' equity:      
    Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, and 85,177,172 shares issued, respectively 852  852  852  852  852  
    Additional paid-in capital 735,990  738,557  737,882  737,178  736,294  
    Retained earnings, partially restricted 323,862  304,466  282,301  264,892  247,336  
    Accumulated other comprehensive income 2,615  6,089  2,082  16,490  18,782  
    Treasury stock, at cost;      
    7,034,754, 6,536,478, 6,534,602, 6,525,783, and 5,629,854 shares, respectively (84,684) (77,493) (77,463) (77,343) (67,376) 
    Unallocated common stock held by the Employee Stock Ownership Plan;      
    31,278, 37,890, 44,502, 51,114, and 58,227 shares, respectively (183) (219) (255) (291) (330) 
    Total stockholders' equity 978,452  972,252  945,399  941,778  935,558  
       Total liabilities and stockholders' equity$8,312,649 $8,461,964 $8,559,810 $8,942,424 $9,000,192  


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
     Three Months Ended
     September 30,
    2021
    		June 30,
    2021
    		March 31,
    2021    		December 30,
    2020
    		September 30,
    2020
     (In Thousands Except Share Data)
    Interest and dividend income:     
    Loans and leases$74,332 $75,026 $75,009 $76,583 $76,240
    Debt securities 2,967  3,121  3,118  3,335  3,746
    Marketable and restricted equity securities 313  233  301  490  672
    Short-term investments 83  42  39  59  46
    Total interest and dividend income 77,695  78,422  78,467  80,467  80,704
    Interest expense:     
    Deposits 4,571  5,380  6,707  8,825  10,583
    Borrowed funds 2,427  1,936  2,651  3,417  4,183
    Total interest expense 6,998  7,316  9,358  12,242  14,766
    Net interest income 70,697  71,106  69,109  68,225  65,938
    (Credit) provision for credit losses (3,110) (3,331) (2,147) (2,103) 4,528
    Net interest income after provision for credit losses 73,807  74,437  71,256  70,328  61,410
    Non-interest income:     
    Deposit fees 2,629  3,015  2,281  2,358  2,305
    Loan fees 487  607  599  588  397
    Loan level derivative income, net 218  7  474  145  527
    Gain (loss) on investment securities, net -  1  (7) -  54
    Gain on sales of loans and leases held-for-sale 557  538  709  67  632
    Other 1,695  1,742  738  1,061  947
    Total non-interest income 5,586  5,910  4,794  4,219  4,862
    Non-interest expense:     
    Compensation and employee benefits 27,206  25,161  25,821  25,054  26,092
    Occupancy 3,567  3,832  4,004  3,806  3,802
    Equipment and data processing 4,556  4,697  4,493  4,193  4,293
    Professional services 1,072  1,245  1,226  1,338  1,112
    FDIC insurance 662  657  1,044  1,630  1,363
    Advertising and marketing 1,077  1,110  1,100  1,010  1,024
    Amortization of identified intangible assets 208  228  232  312  312
    Other 2,574  1,036  2,891  2,695  2,949
    Total non-interest expense 40,922  37,966  40,811  40,038  40,947
    Income before provision for income taxes 38,471  42,381  35,239  34,509  25,325
    Provision for income taxes 9,632  10,779  8,785  7,846  6,646
    Net income$28,839 $31,602 $26,454 $26,663 $18,679
    Earnings per common share:     
    Basic$0.37 $0.40 $0.34 $0.34 $0.24
    Diluted$0.37 $0.40 $0.34 $0.34 $0.24
    Weighted average common shares outstanding during the period:    
    Basic 78,000,261  78,150,364  78,143,752  78,533,351  78,948,139
    Diluted 78,240,633  78,470,451  78,404,063  78,680,873  79,055,901
    Dividends paid per common share$0.120 $0.120 $0.115 $0.115 $0.115
          


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
      
     Nine Months Ended September 30,
     20212020
     (In Thousands Except Share Data)
    Interest and dividend income:  
    Loans and leases$224,367 $233,215
    Debt securities 9,206  10,423
    Marketable and restricted equity securities 847  2,358
    Short-term investments 164  354
    Total interest and dividend income 234,584  246,350
    Interest expense:  
    Deposits 16,658  39,601
    Borrowed funds 7,014  14,811
    Total interest expense 23,672  54,412
    Net interest income 210,912  191,938
    (Credit) provision for credit losses (8,588) 63,989
    Net interest income after provision for credit losses 219,500  127,949
    Non-interest income:  
    Deposit Fees 7,925  6,692
    Loan Fees 1,647  1,460
    Loan level derivative income, net 699  4,123
    (Loss) gain on investment securities, net (6) 1,970
    Gain on sales of loans and leases held-for-sale 1,804  1,051
    Other 4,221  5,129
    Total non-interest income 16,290  20,425
    Non-interest expense:  
    Compensation and employee benefits 78,188  75,931
    Occupancy 11,403  11,580
    Equipment and data processing 13,746  13,152
    Professional services 3,543  3,819
    FDIC insurance 2,363  2,599
    Advertising and marketing 3,287  3,116
    Amortization of identified intangible assets 668  959
    Other 6,501  9,650
    Total non-interest expense 119,699  120,806
    Income before provision for income taxes 116,091  27,568
    Provision for income taxes 29,196  6,596
    Net income$86,895 $20,972
    Earnings per common share:  
    Basic$1.11 $0.27
    Diluted$1.11 $0.27
    Weighted average common shares outstanding during the period: 
    Basic 78,097,600  79,092,424
    Diluted 78,371,190  79,245,113
    Dividends paid per common share$0.355 $0.345
       


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Asset Quality Analysis (Unaudited)
     At and for the Three Months Ended
     September 30,
    2021
    		June 30,
    2021
    		March 31,
    2021    		December 31,
    2020
    		September 30,
    2020
     (Dollars in Thousands)
    NONPERFORMING ASSETS:     
    Loans and leases accounted for on a nonaccrual basis:     
    Commercial real estate mortgage$10,963 $11,657 $3,611 $3,300 $10,841 
    Multi-family mortgage -  -  -  -  - 
    Construction -  -  3,853  3,853  - 
    Total commercial real estate loans 10,963  11,657  7,464  7,153  10,841 
          
    Commercial 2,539  3,207  3,161  7,702  7,751 
    Equipment financing 17,655  14,872  15,772  16,757  13,372 
    Condominium association 91  97  106  112  117 
    Total commercial loans and leases 20,285  18,176  19,039  24,571  21,240 
          
    Residential mortgage 4,150  3,638  3,722  5,587  4,634 
    Home equity 461  744  793  1,136  1,235 
    Other consumer 1  1  2  1  2 
    Total consumer loans 4,612  4,383  4,517  6,724  5,871 
          
    Total nonaccrual loans and leases 35,860  34,216  31,020  38,448  37,952 
          
    Other real estate owned -  -  5,328  5,415  - 
    Other repossessed assets 601  372  1,055  1,100  1,413 
    Total nonperforming assets$36,461 $34,588 $37,403 $44,963 $39,365 
          
    Loans and leases past due greater than 90 days and still accruing$838 $3,154 $1,179 $11,975 $1,180 
          
    Troubled debt restructurings on accrual 13,526  14,387  16,770  11,483  11,309 
    Troubled debt restructurings on nonaccrual 6,655  6,410  6,293  7,476  5,742 
    Total troubled debt restructurings$20,181 $20,797 $23,063 $18,959 $17,051 
          
    Nonperforming loans and leases as a percentage of total loans and leases 0.52% 0.49% 0.43% 0.53% 0.51%
    Nonperforming assets as a percentage of total assets 0.44% 0.41% 0.44% 0.50% 0.44%
          
    PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:   
    Allowance for loan and lease losses at beginning of period$106,474 $109,837 $114,379 $119,971 $119,553 
    CECL adjustment to retained earnings -  -  -  -  - 
    Charge-offs (1,600) (1,221) (2,143) (4,810) (5,511)
    Recoveries 345  626  383  429  548 
    Net charge-offs (1,255) (595) (1,760) (4,381) (4,963)
    (Credit) provision for loan and lease losses excluding unfunded commitments * (2,704) (2,768) (2,782) (1,211) 5,381 
    Allowance for loan and lease losses at end of period$102,515 $106,474 $109,837 $114,379 $119,971 
          
    Allowance for loan and lease losses as a percentage of total loans and leases 1.48% 1.52% 1.51% 1.57% 1.62%
          
    NET CHARGE-OFFS:     
    Commercial real estate loans$(1)$17 $- $3,444 $70 
    Commercial loans and leases 1,276  695  1,809  1,011  4,917 
    Consumer loans (20) (117) (49) (74) (24)
    Total net charge-offs$1,255 $595 $1,760 $4,381 $4,963 
          
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.07% 0.03% 0.10% 0.24% 0.27%
          
    *Provision for loan and lease losses does not include (credit) provision of $(0.4) million, $(0.6) million, $0.6 million, $(0.9) million and $(0.9) million for credit losses on unfunded commitments during the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively.     
     
          


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
     Three Months Ended
     September 30, 2021June 30, 2021September 30, 2020
     Average
    Balance    		Interest
    (1)    		Average
    Yield/
    Cost    		Average
    Balance    		Interest
    (1)    		Average
    Yield/
    Cost    		Average
    Balance    		Interest
    (1)    		Average
    Yield/
    Cost
     (Dollars in Thousands)
    Assets:         
    Interest-earning assets:         
    Investments:         
    Debt securities (2)$713,593$2,9671.66%$721,029$3,1211.73%$851,608$3,7461.76%
    Marketable and restricted equity securities (2) 28,877 3134.33% 34,989 2332.67% 66,154 6704.06%
    Short-term investments 220,110 830.15% 234,317 420.07% 192,446 460.10%
    Total investments 962,580 3,3631.40% 990,335 3,3961.37% 1,110,208 4,4621.61%
    Loans and Leases:         
    Commercial real estate loans (3) 3,851,677 35,1243.57% 3,780,920 34,3203.59% 3,831,826 35,6153.64%
    Commercial loans (3) 901,862 11,7155.09% 1,115,910 13,0404.62% 1,281,202 10,6773.27%
    Equipment financing (3) 1,079,059 17,7256.57% 1,074,469 17,9636.69% 1,089,058 19,0186.99%
    Residential mortgage loans (3) 788,874 6,9893.54% 788,296 6,9273.51% 814,559 7,8603.86%
    Other consumer loans (3) 364,914 2,8303.07% 368,845 2,8333.08% 395,990 3,1273.13%
    Total loans and leases 6,986,386 74,3834.26% 7,128,440 75,0834.21% 7,412,635 76,2974.12%
    Total interest-earning assets 7,948,966 77,7463.91% 8,118,775 78,4793.87% 8,522,843 80,7593.79%
    Non-interest-earning assets 411,669   421,453   495,829  
    Total assets$8,360,635  $8,540,228  $9,018,672  
              
    Liabilities and Stockholders' Equity:         
    Interest-bearing liabilities:         
    Deposits:         
    NOW accounts$502,093 1160.09%$499,883 1460.12%$427,009 1280.12%
    Savings accounts 785,657 2480.12% 774,406 2480.13% 688,223 2580.15%
    Money market accounts 2,387,080 1,6160.27% 2,247,997 1,4970.27% 1,855,803 1,6580.36%
    Certificates of deposit 1,160,113 2,4300.83% 1,226,668 3,1021.01% 1,536,969 7,0221.82%
    Brokered deposit accounts 216,112 1610.30% 418,166 3870.37% 562,112 1,5171.07%
    Total interest-bearing deposits 5,051,055 4,5710.36% 5,167,120 5,3800.42% 5,070,116 10,5830.83%
    Borrowings         
    Advances from the FHLBB 119,043 1,1523.79% 250,102 6631.05% 944,865 2,8761.19%
    Subordinated debentures and notes 83,840 1,2425.92% 83,802 1,2425.93% 83,687 1,2465.96%
    Other borrowed funds 76,380 330.17% 74,285 310.17% 118,969 610.21%
    Total borrowings 279,263 2,4273.40% 408,189 1,9361.88% 1,147,521 4,1831.43%
    Total interest-bearing liabilities 5,330,318 6,9980.52% 5,575,309 7,3160.53% 6,217,637 14,7660.94%
    Non-interest-bearing liabilities:         
    Demand checking accounts 1,827,501   1,785,023   1,569,411  
    Other non-interest-bearing liabilities 224,445   222,689   296,992  
    Total liabilities 7,382,264   7,583,021   8,084,040  
    Stockholders’ equity 978,371   957,207   934,632  
    Total liabilities and equity$8,360,635  $8,540,228  $9,018,672  
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)  70,7483.39%  71,1633.34%  65,9932.85%
    Less adjustment of tax-exempt income  51   57   55 
    Net interest income $70,697  $71,106  $65,938 
    Net interest margin (5)  3.53%  3.52%  3.08%
              
    (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
    (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
    (3) Loans on nonaccrual status are included in the average balances.
    (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.
              


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
     Nine Months Ended
     September 30, 2021September 30, 2020
     Average
    Balance    		Interest
    (1)    		Average
    Yield/
    Cost    		Average
    Balance    		Interest
    (1)    		Average
    Yield/
    Cost
     (Dollars in Thousands)
    Assets:      
    Interest-earning assets:      
    Investments:      
    Debt securities (2)$729,623$9,2061.68%$744,065$10,4891.88%
    Marketable and restricted equity securities (2) 36,451 8473.10% 65,367 2,3714.84%
    Short-term investments 215,496 1640.10% 174,177 3540.27%
    Total investments 981,570 10,2171.39% 983,609 13,2141.79%
    Loans and Leases:      
    Commercial real estate loans (3) 3,806,405 103,6893.59% 3,763,750 112,9123.94%
    Commercial loans (3) 1,087,924 37,5014.55% 1,100,346 29,4553.52%
    Equipment financing (3) 1,077,522 53,7316.65% 1,070,433 56,9377.09%
    Residential mortgage loans (3) 786,015 21,1483.59% 813,196 23,8623.91%
    Other consumer loans (3) 369,744 8,4583.05% 408,332 10,2353.33%
    Total loans and leases 7,127,610 224,5274.20% 7,156,057 233,4014.35%
    Total interest-earning assets 8,109,180 234,7443.86% 8,139,666 246,6154.04%
    Non-interest-earning assets 427,880   479,809  
    Total assets$8,537,060  $8,619,475  
           
    Liabilities and Stockholders' Equity:      
    Interest-bearing liabilities:      
    Deposits:      
    NOW accounts$493,378 3920.11%$394,057 3580.12%
    Savings accounts 757,864 7310.13% 659,754 1,2580.25%
    Money market accounts 2,240,968 4,5990.27% 1,773,234 7,9730.60%
    Certificates of deposit 1,237,682 9,6861.05% 1,618,818 24,6372.03%
    Brokered deposit accounts 413,588 1,2500.40% 434,409 5,3751.65%
    Total interest-bearing deposits 5,143,480 16,6580.43% 4,880,272 39,6011.08%
    Borrowings      
    Advances from the FHLBB 284,540 3,1851.48% 939,821 10,7241.50%
    Subordinated debentures and notes 83,802 3,7265.93% 83,648 3,7936.05%
    Other borrowed funds 80,960 1030.17% 93,698 2940.42%
    Total borrowings 449,302 7,0142.06% 1,117,167 14,8111.74%
    Total interest-bearing liabilities 5,592,782 23,6720.57% 5,997,439 54,4121.21%
    Non-interest-bearing liabilities:      
    Demand checking accounts 1,752,640   1,405,871  
    Other non-interest-bearing liabilities 230,834   280,499  
    Total liabilities 7,576,256   7,683,809  
    Stockholders’ equity 960,804   935,666  
    Total liabilities and equity$8,537,060  $8,619,475  
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)  211,0723.29%  192,2032.83%
    Less adjustment of tax-exempt income  160   265 
    Net interest income $210,912  $191,938 
    Net interest margin (5)  3.48%  3.15%
           
    (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
    (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
    (3) Loans on nonaccrual status are included in the average balances.
    (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.
           


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Non-GAAP Financial Information (Unaudited)
      At and for the Three Months
    Ended September 30,    		At and for the Nine Months
    Ended September 30,
      2021202020212020
    Reconciliation Table - Non-GAAP Financial Information(Dollars in Thousands Except Share Data)
         
    Net income$28,839 $18,679 $86,895 $20,972 
    Less:     
    Security gains (losses) (after-tax) -  40  (4) 1,499 
    Operating earnings $28,839 $18,639 $86,899 $19,473 
          
    Operating earnings per common share:     
    Basic $0.37 $0.24 $1.11 $0.25 
    Diluted  0.37  0.24  1.11  0.25 
          
    Weighted average common shares outstanding during the period:    
    Basic  78,000,261  78,948,139  78,097,600  79,092,424 
    Diluted  78,240,633  79,055,901  78,371,190  79,245,113 
          
          
    Return on average assets * 1.38% 0.83% 1.36% 0.32%
    Less:     
    Security gains (losses) (after-tax) * -% -% -% 0.02%
    Operating return on average assets * 1.38% 0.83% 1.36% 0.30%
          
          
    Return on average tangible assets * 1.41% 0.84% 1.38% 0.33%
    Less:     
    Security gains (losses) (after-tax) * -% -% -% 0.02%
    Operating return on average tangible assets * 1.41% 0.84% 1.38% 0.31%
          
          
    Return on average stockholders' equity * 11.79% 7.99% 12.06% 2.99%
    Less:     
    Security gains (losses) (after-tax) * -% 0.01% -% 0.22%
    Operating return on average stockholders' equity * 11.79% 7.98% 12.06% 2.77%
          
          
    Return on average tangible stockholders' equity * 14.15% 9.70% 14.53% 3.63%
    Less:     
    Security gains (losses) (after-tax) * -% 0.02% -% 0.26%
    Operating return on average tangible stockholders' equity * 14.15% 9.68% 14.53% 3.37%
          
    * Ratios at and for the three and nine months ended are annualized.    
          
          
     At and for the Three Months Ended
     September 30,
    2021
    		June 30,
    2021
    		March 31,
    2021
    		December 30,
    2020
    		September 30,
    2020
     (Dollars in Thousands)
          
    Net income, as reported$28,839 $31,602 $26,454 $26,663 $18,679 
          
    Average total assets$8,360,635 $8,540,228 $8,714,158 $8,874,467 $9,018,672 
    Less: Average goodwill and average identified intangible assets, net 163,011  163,224  163,457  163,758  164,072 
    Average tangible assets$8,197,624 $8,377,004 $8,550,701 $8,710,709 $8,854,600 
          
    Return on average tangible assets (annualized) 1.41 % 1.51 % 1.24 % 1.22 % 0.84 %
          
    Average total stockholders’ equity$978,371 $957,207 $946,482 $937,294 $934,632 
    Less: Average goodwill and average identified intangible assets, net 163,011  163,224  163,457  163,758  164,072 
    Average tangible stockholders’ equity$815,360 $793,983 $783,025 $773,536 $770,560 
          
    Return on average tangible stockholders’ equity (annualized) 14.15 % 15.92 % 13.51 % 13.79 % 9.70 %
          
    Total stockholders’ equity$978,452 $972,252 $945,399 $941,778 $935,558 
    Less:     
    Goodwill 160,427  160,427  160,427  160,427  160,427 
    Identified intangible assets, net 2,484  2,692  2,920  3,152  3,464 
    Tangible stockholders' equity$815,541 $809,133 $782,052 $778,199 $771,667 
          
    Total assets$8,312,649 $8,461,964 $8,559,810 $8,942,424 $9,000,192 
    Less:     
    Goodwill 160,427  160,427  160,427  160,427  160,427 
    Identified intangible assets, net 2,484  2,692  2,920  3,152  3,464 
    Tangible assets$8,149,738 $8,298,845 $8,396,463 $8,778,845 $8,836,301 
          
    Tangible stockholders’ equity to tangible assets 10.01 % 9.75 % 9.31 % 8.86 % 8.73 %
          
    Tangible stockholders' equity$815,541 $809,133 $782,052 $778,199 $771,667 
          
    Number of common shares issued 85,177,172  85,177,172  85,177,172  85,177,172  85,177,172 
    Less:     
    Treasury shares 7,034,754  6,536,478  6,534,602  6,525,783  5,629,854 
    Unallocated ESOP shares 31,278  37,890  44,502  51,114  58,227 
    Unvested restricted shares 502,808  448,105  449,981  458,800  487,318 
    Number of common shares outstanding 77,608,332  78,154,699  78,148,087  78,141,475  79,001,773 
          
    Tangible book value per common share$ 10.51 $ 10.35 $ 10.01 $ 9.96 $ 9.77 
          
    Allowance for loan and lease losses$102,515 $106,474 $109,837 $114,379 $119,971 
          
    Total loans and leases$6,931,694 $7,020,275 $7,267,552 $7,269,553 $7,396,358 
    Less:     
    Total PPP loans 160,586  348,411  604,790  489,216  568,383 
    Total loans and leases excluding PPP loans$6,771,108 $6,671,864 $6,662,762 $6,780,337 $6,827,975 
          
    Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans 1.51 % 1.60 % 1.65 % 1.69 % 1.76 %
          

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